Travelers using cryptocurrency for booking arrangements spend more than twice as much as regular travelers using fiat money, according to a joint report from Binance Pay and crypto travel platform Travala shared with Cointelegraph.Crypto-based bookings on Travala reached $80 million in 2024, up from $45 million the year before.
Crypto travelers are also outspending their fiat counterparts, with an average booking value of $1,211 per transaction, over 2.5 times more than fiat users who spend $469.Additionally, the report said crypto users were three times more valuable over their lifetime due to longer stays and higher repeat bookings, with crypto travelers 57% more likely to make a repeat hotel purchase.Source: Binance Pay, TravalaJuan Otero, CEO of Travala, attributed these travel preferences to the flexible nature of Web3 jobs:Many also work in the digital asset industry or have flexible, remote work lifestyles, which makes them more likely to travel frequently and stay in one place for longer while seeking out destinations that support seamless, global payments.Crypto-based transactions have become more common in the travel sector and beyond.
Airlines that have integrated digital currencies into their booking systems have seen a 40% boost in bookings, with travel and hospitality representing 14% of all crypto transactions in 2024, according to a Feb.
21 report by Triple-A.Related: Crypto spending will grow, but fiat isnt going anywhere: Mercuryo CEOThe main benefit of using crypto for travel is its borderless, global utility, Jonathan Lim, the global head of Binance Pay, told Cointelegraph.
Travelers can skip currency exchange lines, avoid foreign transaction fees, and pay instantly using assets they already hold, he added.A growing number of crypto users also drives the increase in travelers using crypto to pay for trips.
Triple-As report shows that cryptocurrency ownership has a compound annual growth rate of 99%, significantly outpacing the growth of traditional payment methods.
Among crypto owners, 65% express interest in using it for payments.Founded in 2017, Travala is among the most popular crypto-native travel platforms, which enables users to pay for services like flights, hotel stays and tours with 141 different cryptocurrencies, including Bitcoin (BTC) and USDC (USDC) via Binance Pay.Related: Bhutan launches tourism crypto payments with Binance Pay and DK BankThe first real-world Bitcoin transaction 10,000 BTC for two pizzas occurred 15 years ago today, on May 22, 2010, now commemorated as Bitcoin Pizza Day.
Since then, crypto payments have expanded into high-end retail, luxury goods and more recently, fast food.First real-world purchase using BTC Source: bitcointalk.orgThe first retail businesses to accept cryptocurrency payments were primarily targeted at high-income consumers.
In 2021, fashion brand Philipp Plein became one of the pioneers in accepting crypto, followed by Gucci, luxury watchmakers Franck Muller and Norgain, as well as high-end car dealerships and manufacturers.As the crypto holder base expands, more retailers are beginning to accept digital currencies for everyday transactions.
On May 16, American fast food outlet Steakn Shake began to accept Bitcoin as payment.Yet even with the Lightning Network implementation, a Steakn Shake customer revealed that a $5 burger could cost over $8 with network fees and take over 20 minutes to confirm payment.Related: Bitcoin accepted at fast food chain Steak n Shake from May 16With Binance Pay, payments are confirmed within seconds.
Lim told Cointelegraph thats because Binance Pay operates as an offchain, closed-loop payment solution within the Binance ecosystem.Still, most crypto travel payments on Travala are made using stablecoins like Tethers USDt (USDT) and Circles USDC (USDC).
Binance Pay transactions are ultimately converted into fiat at the point of sale by the merchant or payment partner based on a predetermined exchange rate.Magazine: Crypto is used for payments in Georgia, not to get rich: Tbilisi Crypto City Guide